M/s R N A Construction, Siliguri V. D.C.I.T., Circle-1(1), Jalpaiguri

ITA 436/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 2792 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 26-08-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 07-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SA TYAJIT MANDAL CIT LD
• Section: 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B - SMC BENCH : KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM ] I .T.A . NO. 436 /KOL/201 9 ASSESSMENT YEAR : 20 1 3 - 14 M/S. RNA CONSTRUCTION V/S. DCIT, CIRCLE - 1(1), JALPAIGURI PAN: AAIFR 1359K (APPELLANT) (RESPONDENT) FOR THE APPELLANT : NONE FOR THE RESPONDENT : SHRI SA TYAJIT MANDAL, ADDL. CIT, LD. SR.DR DATE OF HEARING : 2 6.08. 2019 DATE OF PRONOUNCEMENT : 30. 0 8 .2019 ORDER SHRI S.S. GODARA, JM : 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 20 13 - 14 ARISES AGAINST THE CIT(A), JALPAIGURI S ORDER DATED 0 4 - 07 - 201 8 PASSED IN CASE NO. 06/ CIT(A) /JAL/2016 - 17 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961 ( IN SHORT ACT). NONE APPEARS AT THE ASSESSEES BEHEST. IT IS ACCORDINGLY PROCEEDED EX PARTE AGAINST THE ASSESSEE . 2 . HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE, CASE FILE PERUSED WITH THE ABLE ASSISTANCE OF THE LEAR NED DR. 3. ASSESSEES FORMER SUBSTANTIVE GROUND CHALLENGES THE CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION DISALLOWANCE OF RS.1,47,719/ - ON UNSECURED LOAN PAID TO RELATED PARTIES U/S. 40A(2)(B) OF THE ACT. 2 I.T.A. NO. 436 /KOL/201 9 A.Y 20 1 3 - 14 M/S. RNA CONSTRUCTION 2 4. I FIND THAT ASSESSEE HAS PAID INTEREST @ 15% WHEREAS LEARNED LOWER AUTHORITIES HAVE TREATED THE SAME @ 12% RATE OF INTEREST AS MARKET RATE. THERE IS NO DISCUSSION IN THEIR RESPECTIVE ORDER FOR TREATING THE INTEREST @12% AS MARKET RATE. I OBSERVE IN THESE FACTS THAT IMPUGNED DISALLOWANCE LAC K S THE BASIC FOUNDATION THEREFORE. THE SAME IS DIRECTED TO BE DELETED. 5. NEXT COMES LAT T ER ISSUE OF ESTIMATING THE DISALLOWANCE TO THE EXTENT OF RS.3,48,028/ - @ 1% COMING TO RS.3,48,028/ - UNDER VARIOUS HEADS OF BUILDING MATERIALS, LABOURS AND OTHER RELATED EXPENSES. I FIND HEREIN AS A WHOLE THAT NEITHER THE ASSESSEE HAS BEEN ABLE TO PROVE THE IMPUGNED EXPENDITU RE UNDER ALL THESE HEADS NOR T HE DEPARTMENT HAS NOT GIVEN ANY JUSTIFICATION FOR INVOKING DISALLOWANCE. I THEREFORE DEEM IT APPROPRIATE TO RESTRICT THIS AD D ITION/DISALLOWANCE TO LUMP SUM AMOUNT OF 2,50,000/ - ONLY WITH A RIDER THAT THE SAME SHALL NOT BE TREATED AS PRECED ING ANY OTHER CASE. 6. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS ORDER PRONOUNCED IN THE COURT ON 30 - 08 - 2019 SD/ - [ S.S.GODARA ] JUDICIAL MEMBER DATED : 30 - 08 - 2019 **PRADIP, SR. PS C OPY OF THE ORDER FORWARDED TO: 1 . APPELLANT/ ASSESSEE: M/S. RNA CONSTRUCTION, BHAGAT SINGH SARANI, OPP: PUNAM NIWAS, PANJABIPARA, SILIGURI - 734001. 2. RESPONDENT/ DEPARTMENT : DCIT, CIR - 1(1), JALPAIGURI, W.B. 3..C.I.T (A) . - 4. C.I.T. - KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER ASSISTANT REGISTRAR H.O.O/D.D.O KOLKATA